Below is a chart showing the percentage of stocks in the S&P 500 that are trading above their 50-day moving averages. As shown, this breadth indicator has been drifting lower over the past couple of weeks, even as the index itself has been trading sideways. At the moment, 71% of stocks in the S&P are above their 50-days, which is well below the reading in the 80s that we saw a few weeks ago.
Sector breadth readings have also been trending lower recently. The Industrials, Consumer Staples and Health Care sectors have seen the biggest dips, dropping from the high 80s and low 90s down to the 60s. The Financial and Telecom sectors currently have the highest percentage of stocks trading above their 50-days.
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